Peloton (PTON) Earnings Q2 2026

Peloton Thursday posted a worse-than-expected holiday quarter as shoppers failed to make up for it. A new AI-driven product line And it got away from higher subscription prices, sending shares down 26%.

The connected fitness company missed Wall Street estimates on the top and bottom lines and missed its own internal sales target for the three months ended Dec. 31 — particularly strong for Peloton’s hardware revenue.

The company said it expects sluggish sales to continue in the current quarter. Peloton forecast revenue between $605 million and $625 million, below expectations of $638 million, according to LSEG.

The weak results, along with soft guidance, are the first indications to investors that Peloton’s product overhaul may not be the sales driver the company had hoped.

The revamped assortment, which came with artificial intelligence-powered tracking cameras, speakers, a 360-degree swivel screen and hands-free controls, was designed to boost sales and bring in new customers. But Peloton’s results showed demand had waned.

“I will not be satisfied until this company returns to healthy, sustainable top line growth,” CEO Peter Stern said on a call with analysts. He said the company has seen improvement in the sense that its revenue declines are slowing, but admitted it is “not enough.”

Peloton’s top line may be disappointing for investors, but the company is still doing well Benefit in improving its profitability. During the holiday quarter, the company generated $81 million in adjusted earnings before interest, taxes, depreciation and amortization, better than the $73 million analysts expected, according to StreetAccount.

After announcing plans to lay off 11% of its workforce last week, the company expects to generate $120 million to $135 million in adjusted EBITDA in the current quarter, better than analysts’ expectations of $119 million, according to StreetAccount.

It raised its full-year adjusted EBITDA guidance to $450 million to $500 million, up from a prior range of $425 million to $475 million.

This is welcome news for investors as it shows that Peloton is able to innovate its product line without cutting into profitability.

Also Thursday, the company announced that CFO Liz Coddington is leaving Peloton to “pursue an opportunity outside the industry.” She will stay until March as the company searches for its next finance chief.

Here’s how Peloton fared in its fiscal second quarter compared to Wall Street expectations, based on a survey of analysts by LSEG:

• Loss per share: 9 cents vs. 6 cents expected
• Revenue: $657 million vs. $674 million expected

The company’s net loss for the quarter was $38.8 million, or 9 cents per share, a significant improvement from the $92 million, or 24 cents per share, it lost in the year-ago period.

Sales came in at $656.5 million, down about 3% from $673.9 million a year ago.

Since Peter Stern took over CEO of PelotonHe has worked on the progress of generating new revenue streams and improving the company’s profitability.

Revamped product assortment was one of his first big moments as CEO and included new prices for both subscriptions and hardware. Despite higher prices, revenue for both hardware and subscriptions came in below expectations, indicating that unit sales are weak.

Hardware sales generated $244 million in revenue during the quarter, while subscriptions generated $413 million in sales, both short of expectations of $253 million and $424 million, respectively, according to StreetAccount.

Part of the problem was that Peloton expected its current members to replace their old hardware.

“We just overestimated the rate at which existing members wanted to upgrade their existing equipment to new equipment. When we launched Bike Plus a few years ago, we had only a historical data point as a company, and that was a really basic reinvention of the entire bike frame,” Stern said. “And so we haven’t seen the same rate of upgrades from existing subscribers.

Looking ahead, investors will want to see if Stern can return the company to growth as costs stabilize and profits improve. Where in the economy Value is more important More than ever, it has become harder to convince shoppers to spend thousands on stationary bikes and treadmills.

One glimpse could be the company’s growing commercial business unit, which includes commercial versions of its Bike+, Tread+ and Row+ that will be sold in places with small gyms such as hotels, apartment buildings, corporate wellness centers and country clubs.

During the quarter, revenue in Peloton’s commercial business unit was up 10%.